Amazon Plans $600M, 2.8M Sq.Ft. Hawaii Warehouse and AI Licensing Push
AMZN•Amazon plans a five-floor, 2.8 million sq. ft. order fulfillment center in Kapolei, investing $600 million and employing 1,562 staff across two shifts while seeking a height limit amendment to 100 feet. AWS will license its AI shopping technology to other retailers, boosting recurring cloud revenue and innovation.
1. Kapolei Warehouse Expansion
Amazon is pursuing development of a five-floor, 2.8 million square foot distribution and order fulfillment center within Kapolei’s business park. The $600 million project on 49 acres—acquired for $76.2 million in 2021—would employ 1,562 workers in two shifts, feature 47 loading docks, 895 parking spaces and requires a zoning amendment to raise the height limit to 100 feet.
2. AI Shopping Technology Licensing
AWS is offering its AI-driven shopping features—originally built for Amazon’s own platform—to external retailers via its cloud services. This strategy monetizes internal innovation, expands recurring revenue streams and strengthens Amazon’s foothold in retail technology.
3. UBS Buy Rating and Growth Outlook
UBS reaffirmed a Buy rating on Amazon, citing robust AWS innovation and the company’s global expansion. Positive technical indicators and substantial market capitalization underpin expectations for accelerated earnings growth.
